ECLGS 5.0 issues over 4.11 lakh guarantees worth Rs 1.55 lakh crore

The government said ECLGS 5.0 has issued over 4.11 lakh guarantees worth ₹1.55 lakh crore since its launch, with MSMEs receiving 98 per cent of guarantees by number. The scheme aims to boost liquidity for businesses affected by West Asia-related disruptions

New Delhi: The Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 has issued 4,11,497 guarantees since its launch, with the guaranteed amount reaching Rs 1,55,229 crore — a sign of the scheme’s rapid absorption across the lending ecosystem, the government said on Tuesday.

The scheme, approved by Union Cabinet on May 5, 2026, is delivering fast, large-scale liquidity support to businesses affected by the West Asia geopolitical situation.

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The scheme is designed to provide risk mitigation for lending institutions to provide additional credit to borrowers, thereby helping businesses to tide over cash-flow disruptions and sustain operations.

“By extending 100 per cent guarantee coverage to additional loans of MSMEs and 90 per cent to other business segments, the scheme has allowed financial institutions to lend more confidently, ensuring liquidity reaches the needy sectors,” the Finance Ministry said in a statement.

The results from ECLGS 5.0 reflect the government’s continued commitment to building a resilient, responsive credit ecosystem.

As the scheme evolves and outreach expands, it is expected to further strengthen liquidity support for businesses including MSMEs and enable entrepreneurs to meet their liquidity needs in the times of external challenges, said the ministry.

The scheme has overwhelmingly benefited India’s small business sector. About 98 per cent of all guarantees issued (by number) have benefited MSMEs and 82 per cent of the total guaranteed amount is also towards MSMEs.

To maximise awareness and adoption, the Department of Financial Services (DFS) has led a structured outreach campaign across the country.

The phase 1 was completed across nine locations, conducted through State Level Bankers’ Committees (SLBCs) with active participation from the National Credit Guarantee Trustee Company (NCGTC), PSB Alliance, banks, industry associations, and enterprises.

The Phase 2 is currently underway at 10 locations, of which 4 have been completed. These outreach programmes are intended to ensure that eligible borrowers are aware of the Scheme and are able to access its benefits, while Member Lending Institutions (MLIs) are equipped to facilitate its effective implementation.